POINT CLEAR, Ala. — Governors from across the U.S. Southeast gathered this week on Alabama’s Gulf Coast for the 65th annual meeting of the Southern States Energy Board, where artificial intelligence, power grid reliability and long-term energy planning dominated the conversation.
The meeting, hosted by Alabama Gov. Kay Ivey, drew state leaders, regulators and energy industry officials to Point Clear. It underscored how the South is positioning itself as a hub for both energy innovation and AI-driven economic development.
Ivey opened the Governors’ Energy Caucus by highlighting the state’s longstanding resources and a commitment to multiple forms of generation.
“Like many of your states, Alabama is energy rich. Our electricity generation is powered by a balanced mix of natural gas, nuclear, hydroelectric, and a growing share of solar power,” Ivey said.
Charles McConnell, executive director of the Center for Carbon Management, moderated the session and urged a balanced approach to complex energy challenges.
“We’re not just solving for one item. We have to have real answers for real complex challenges. And what reliable and affordable energy is, it is the most important point to debate in terms of policy and solutions,” McConnell said.
Georgia Gov. Brian Kemp said the rapid rise of artificial intelligence and the data centers that support it could reshape local finances, but warned the U.S. must remain competitive.
“Some communities push back on data centers, but there are others that are embracing it,” Kemp said. “I talked to a county executive who believes a new data center project will wipe out completely all their property taxes. But I just think we have to win the AI race. The flip side of losing the AI race from a national defense and economic policy perspective is something we simply cannot afford.”
Mississippi Gov. Tate Reeves pointed to one local community where a major data center development is projected to generate billions in new property tax revenue.
“They are going to collect somewhere in the neighborhood of two and a half to three and a half billion dollars over the next 30 years in property taxes,” Reeves said. “That can reduce the need for tax increases, take pressure off the state to fund infrastructure and schools, and support thousands of jobs tied to data center operations.”
Missouri Gov. Mike Kehoe said success will also depend on winning public support early in the process.
“Communities have to get out in front of those headwinds first,” Kehoe said. “The industry, along with us, has to do a really good job of making sure there is not a fear factor built into these projects going forward.”
Kemp also stressed the need for a broad mix of power sources.
“If you ever get too dependent on one thing, you get too dependent on natural gas or nuclear, a market correction can create big problems. Really having a diverse energy supply long term is not a bad place to be,” Kemp said.
Organizers said the event was about more than discussion. Governors described the meeting as an effort to set long-term strategies for keeping energy reliable and affordable while preparing the South to compete for artificial intelligence investment in the decades ahead.
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